Article updated on 13 July 2023.
One of the easiest ways to start a digital transformation process is with the help of a remote team. In other words, outsourcing one or more projects to a larger talent pool, usually from another country. This means outsourcing the entire project or augmenting your in-house team.
The proximity of the outsourcing companies is the main difference between nearshore software outsourcing and outsourcing software development. Outsourcing can mean anywhere in the world, but with nearshoring, we’re talking about a nearby country.
Why does nearshoring make more sense for your needs? Today, we’re discussing five major benefits of working with a nearshore software development company.
What should you be looking forward to when hiring a nearshore team? Here are 5 main benefits:
Nearshoring allows you to significantly reduce development costs, and therefore invest them in other important projects.
Depending on the country you choose to hire your remote team from, the differences between rates can be decisive. Of course, the quality of the work and the team’s culture are also contributing factors.
So how can nearshoring help you cut costs and still maintain a quality output? Let’s take, for example, an Eastern European country like Romania.
The less expensive labour and the tax exemption for software developers make Romania a European paradise for outsourcing services.
Let’s explore some numbers. The average annual salary of a senior software engineer in the UK is somewhere between £50K - £70K, whereas, in Romania, it ranges between £25K - £40K. Clearly, cutting back on some pretty hefty costs just with labour pay, project management and taxes alone.
But are they just as good? How do you know you're getting your money’s worth?
Eastern European countries like Romania benefit from a strong emphasis on STEM education. What does this mean? The higher education system in these countries has a strong inclination towards career pursuits like engineering and science. It also follows the Bologna system, implemented in many European countries to ensure the quality of the higher education process.
Also, education is very affordable. Many graduates already have a good skill set when they choose to make a living in these occupations. The results are self-explanatory. The labour force specialised in IT and software engineering is rapidly growing every year.
Romania, for example, is seen as an important player in the CEE region, a fast-growing software development hub. But how do you know if this is the right path for your organisation?
One of the much-appreciated factors when choosing a software nearshoring company is compatibility. This key feature can include things like language match, cultural similarities, geographical proximity, ease of travel, etc.
Probably the most important aspect of any relationship is communication. For example, much can be lost in translation though language barriers, and it decreases productivity significantly. But in the CEE, English is spoken widely and you also benefit from similar time zones.
In fact, it's been a mandatory subject since pre-school in some countries. And as they reach adulthood, they speak it fluently, alongside German, French, Italian, or Spanish. This ensures more efficient partnerships.
So. when you’re evaluating a potential partner, it’s relatively common to find a correlation between a lower price and a language barrier. When you’re in a partnership with a nearshoring company from the Eastern Europe, you enjoy a nice cultural overlap.
These countries share a similar history with the Western countries. People are used to displaying their opinions openly and creating meaningful work that brings value. They are solution-oriented and are used to a flexible working environment.
Flexibility is a key feature of any collaboration. But what does it mean to be flexible and, even more, encourage it for overall business success?
A remote team, especially from the CEE region, usually has in place some very distinctive protocols for every project they take on.
No one expected an (almost) global lockdown, but times have always been uncertain, especially for business owners. The main benefit of a remote team is versatility. They can perform the tasks, participate in daily meetings and keep up with the quality of their work from anywhere, as long as the internet connection is good.
And so, most software development companies have implemented procedures so that their teams can work from home keeping the same work standards. Team leaders have the responsibility to check in and make sure that their team members are OK and happy with their jobs. This means that you have less to worry about and that remote teams can work according to their preferences.
But how important is having good infrastructure? Quite a lot, in the short and long term.
In terms of IT infrastructure, the CEE stands out from the crowd. Eastern European countries benefit from ultrafast fibre internet and world-class digital infrastructure. There are four variables that assess the quality of the infrastructure:
Fortunately, most of the CEE countries rank very well on all these elements. This impressive performance can be attributed to the widespread availability of fibre internet which is much faster than the internet via copper cables.
Take Romania for example. Due to a lack of clear regulations, some savvy entrepreneurs set up fast-speed internet networks delivered to people at a very good price. This allowed for high-quality fibre to cross cities and form a network of really good internet connections all over the country.
For the start-up and business scene, the outstanding digital infrastructure makes the CEE region a great choice. Nearshoring creates a perfect environment for open collaboration between partners.
Nice to meet you!
Qubiz is a one-stop-shop technology partner, covering the whole application lifecycle, including functional design and consulting, software architecture design, UX/UI design, software development, QA, and maintenance.
We’ve been in business for enough time to understand that putting people first matters the most. Our unique approach has led to successful collaborations with many Western European companies, big and small, in The Netherlands, The UK and the DACH region. Our clients enjoy a trusted partnership, faster time-to-market and flexibility, among many other advantages.